DP World Reports Revenue Growth of 6.6% in 2023
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DP World Limited has announced resilient financial results for the year ended December 31, 2023.
Revenue reportedly grew 6.6% to $18.25 billion and adjusted EBITDA increased 1.9% to $5.108 billion with a healthy adjusted EBITDA margin of 28.0%.
Featured results
– Revenue increased 6.6% to $18.25 billion.
– Revenue growth of 6.6% was supported by Drydocks World (+$400 million) and full-year consolidation benefit from the acquisition of Imperial Logistics (+$900 million) with comparable growth driven mainly due to our Ports and Terminals and Logistics business.
Adjusted EBITDA increased 1.9% to $5,108 million
– Adjusted EBITDA grew by 1.9% and the EBITDA margin for the year stood at 28.0%. The comparable adjusted EBITDA margin stood at 28.9%.
Profit for the year decreased by 17.7% to $1,514 million
– Profit for the year decreased by 17.7% mainly due to higher financial costs.
Strong cash generation
– Cash generated from operating activities increased 2.9% to $4,579 million in 2023 ($4,451 million in 2022).
-Leverage (net debt to adjusted EBITDA) on a pre-IFRS16 basis increased to 3.5x (FY2022: 2.7x) due to higher net debt. On a post-IFRS 16 basis, net leverage stands at 3.8x (FY2022: 3.0x).
– DP World’s financial policy remains unchanged: manage the balance sheet below 4.0 times net debt to EBITDA (pre-IRFS 16) and maintain a strong investment grade rating.
Selective investment in key strategic growth markets
– Capital expenditures of $2,112 million ($1,715 million in 2022) were invested across the existing portfolio.
– Capital expenditure budget for 2024 is approximately $2 billion to be mainly invested in Jebel Ali (UAE), London Gateway (UK), Inland Logistics (India), Dakar (Senegal), East Java (Indonesia) , Callao (Peru) and Jeddah, Saudi Arabia).
DP World focused on driving revenue synergies and building long-term relationships with cargo owners
– Enhanced logistics portfolio delivers value-added capabilities in fast-growing markets and verticals.
– DP World aims to offer supply chain solutions to cargo owners by leveraging its world-class infrastructure.
– The group is well positioned to capitalize on the growing demand for customized solutions in the logistics industry.
Committed to transitioning to net zero emissions in line with the UAE Initiative 2050
– 13% decarbonization in Scope 1 and Scope 2 carbon emissions
– Committed to investing more than 500 million dollars to reduce CO2 emissions in the next 5 years.
Resilient performance in 2023, outlook remains uncertain
– Strong performance in 2023, but outlook remains uncertain due to increased geopolitical and macroeconomic headwinds.
– DP World remains optimistic about the medium and long-term outlook for global trade and is focused on delivering integrated supply chain solutions to cargo owners to drive sustainable returns.
DP World Group Chairman and CEO Sultan Ahmed bin Sulayem expressed satisfaction with the stable results, highlighting a 1.9% increase in adjusted EBITDA to $5.1 billion amid challenging geopolitical and macroeconomic conditions. He highlighted the strategic focus on high-margin freight, integrated supply chain solutions and cost optimization as key drivers of success, laying the foundation for sustainable growth. Bin Sulayem He emphasized the resilience of Logistics businesses, attracting more cargo owners with customized solutions and strategic investments in high-growth sectors. Despite the uncertainties, he remains optimistic about a strong and sustained performance and DP World ability to generate consistent returns in the medium and long term.
News source: Dubai Press Office
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